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Fundamental analysis: Cisco Systems, Inc. (CSCO)

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Poor), and the company's inclination to return cash to the stockholders (Excellent).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

  • Business has been shrinking. It's been below average when measured against peer companies.
  • Cisco Systems, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 9.0

  • CSCO profit margins -on goods and services sold- are usually excellent. They stand top-notch against rival companies.
  • Business profit on sales tends to be huge. It's top tier when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain impressive in relation to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be excellent in relation to total revenues. They're still top-notch against similar companies.
  • Profits -before income taxes- are usually excellent considering total sales, and remain top tier when measured against rivals.
  • Total net profit tends to be excellent when confronted to sales. Company stands top tier when measured against comparable firms.

Growth score: 6.6

  • Cisco Systems, Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
  • In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at a very good pace, which compares more than average in relation to peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an excellent tempo. It turns to be a slight improvement compared to similar stocks.
  • In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and great when measured against peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been excellent in relation to industry peers.

Miscellaneous score: 5.3

  • CSCO had hardly to pay income taxes in relation to profits made in the past years. It's been slightly better than peers.
  • Research and development expenses consume a moderate portion of revenues. It's almost average when measured against competitors.
  • The company hardly grows despite of research and development efforts. It stands lacking compared to rival companies.

Profitability score: 9.8

  • Cisco Systems, Inc. usually gets excellent returns on the resources it controls. It proves top tier when measured against peer firms.
  • The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
  • Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
  • In the past, got huge returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's top tier when measured against comparable enterprises.

Usage of Funds score: 6.0

  • CSCO usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands top tier when measured against rival firms.
  • The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is substantially worse when measured against industry peers.
  • In the past twelve months it paid good dividends, considering the current stock price. It came somewhat better than competitors.
  • In recent years, has slightly cut back dividend payments. The company has behaved close to average when compared to similar firms.
  • The company usually uses some portion of genuine funds generated to pay dividends. Dividend payments should be safe, unless business prospects take a nosedive. Sustainability looks somewhat worse than comparable companies.
  • The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains impressive in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
  • The company uses somewhat more funds to reward investors than it can genuinely generate, so some part of them is paid out of existing cash or by borrowing money, both of which will eventually reach a limit. Either business somewhat improves, or rewards will probably not be sustained at this pace. It still looks weak when measured against competitors.

Balance Sheet score: 5.7

  • Cisco Systems, Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a very weak position compared to similar firms.
  • A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains somewhat better than rival firms.
  • Controlled resources take time to be turned into cash and equivalents, which is somewhat risky. It looks substantially worse when measured against rivals.
  • For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's close to average when compared to peer firms.
  • For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is somewhat better than similar enterprises.
  • Usually, sales are on slightly higher than two months credit. It still ranks encouraging in relation to peers.
  • Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in good shape compared to competitors.
  • On average, it takes higher than four months from the purchase to charging customers. It happens to be top-notch against peers.
  • On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a slight improvement compared to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been excellent when measured against loans taken. It could take less than two years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks impressive in relation to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 6.4

  • Cisco Systems, Inc. looks reasonable in relation to profits and financial position. It happens to be great when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still great when measured against industry firms.
  • In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation might be more or less reasonable, but hardly cheap. It ranks great when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in a very weak position compared to rival firms.
  • The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
  • In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very good earnings power ability when measured against the current stock price and financial position. It's still impressive in relation to peer companies.

Total score: 6.8


CSCO logos

Company at a glance: Cisco Systems, Inc. (CSCO)

Sector, industry: Technology, Communication Equipment

Market Cap: 199.28 billions

Revenues TTM: 52.29 billions

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. It provides infrastructure platforms, including networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities, and transport and/or store data. The company also offers collaboration products comprising unified communications, Cisco TelePresence, and conferencing, as well as the Internet of Things and analytics software. In addition, it provides security products, such as network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products. Further, the company offers a range of service and support options for its customers, including technical support and advanced services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Awarener score: 7.5

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Poor), and the company's inclination to return cash to the stockholders (Excellent).